5 Proven Money Habits For Succeeding In Business
According to a GlobeNewswire report, 100% of small business owners admitted that being financially illiterate was the reason why they avoided reviewing their financial statements and had poor money habits. Manifestation is great, but it can be more challenging for the universe to work in your favor with poor money habits. The poor financial health of your business comes from your poor money habits as a business owner. PERIOD.
A powerful money mantra with inconsistent and poor money habits will lead you nowhere. So Why is having healthy money habits so crucial to the success of a business? Because healthy money habits help you to set priorities, pivot quickly, and avoid decisions that could be extremely costly, or worst, end your business.
That’s why, in this blog, I will share with you my 5 proven money habits for succeeding in business:
1. ESTABLISH A MORNING ROUTINE THAT INCORPORATES INSTILLING A POSITIVE MONEY MINDSET
Why focus on your money mindset? Well, business strategy alone will not drive you to where you financially want to be. Yes, business strategy is a must for your business. Still, without a positive money mindset, it will be challenging for you to face financial detours or even set audacious financial goals for your business. A great life comes from a great mindset. And for us entrepreneurs and small business owners, financial freedom stems from a positive money mindset. [Follow our Instagram page to get a weekly money mantra to help you set a positive money mindset.]
Here’s how to power up your money mindset:
- Ask, “what am I thankful for today?”
- List at least 3 of the events/changes/happenings you were thankful for in your life.
- Recite your money affirmations – ALOUD! Yes, you need to say your affirmations in a loud and proud voice, so your inner soldier will hear them and not doubt you when you’re on your financial journey.
- You have a vision and goals for your business. Visualize that you have already achieved your vision and financial goals. Acknowledge the feelings you feel when you visualize it and keep ahold of them.
2. CONDUCT WEEKLY MONEY DATES
I bet dates with your loved ones are fun, full of laughs and love, and all the positive vibes. Now, imagine having a date with your money! Would it be exciting? Full of surprises? It may not be so different than the usual dates you have experienced. Money dates can vary; sometimes, they may be stressful and frustrating to be on a date with, and other times, they are fun, energizing, and downright uplifting! But regardless of how any one particular money date may be, when done right, they will help save you from what could be loads of financial trouble down the line.
Here’s how to approach your money date:
2.1 Financial Reports
Pull your latest financial reports (e.g., financial statements, banking statements), Your Profit Playbook (financial plan), and your Key Performance Indicators (KPI) dashboard.
2.2 Update KPI Dashboard
Update your KPI dashboard with information from your latest financial reports/activity for the week. It is critical to gauge the financial health of your business frequently and consistently to gain financial clarity.
2.3 Meet With Your Business Finance Coach
According to a Business Wire report, 66% of small business owners whose finances are currently messy said they want to get their finances in order but need to know how and where to start. A business finance coach is what you need. Schedule a meeting with your finance coach at least monthly. Make sure you have all the necessary data (Step 2.1), so you can discuss it with your business finance coach and strategize accordingly. Want to level up your game in business, and improve your cash flow and business financial health? Ask a Forbes-ranked top business finance coach here!
Ultimately, I do money dates daily. But for beginners, as a rule of thumb, I always recommend performing it weekly. You must push yourself to get in the habit of performing these check-ins weekly. Don’t wait until the end of the month!
3. CHECK IN ON YOUR INVOICES (INVOICES DUE TO YOU + INVOICES YOU NEED TO PAY)
We often joke in the finance world that the word “invoice” is too soft and friendly and that we need a new word that means “pay up or else.” I kid. But in all seriousness, an invoice is like a double-edged sword that can be used favorably or unfavorably for you. How?
- Too many invoices are due to you: Waiting for that money that is duly owed but not yet in your bank account could land you in real trouble if you run your business with less than a month of cash runway and not enough in cash reserves, which 69% of small business owners don’t have.
- Too many invoices waiting to be paid by you: This could result in unhappy vendors waiting to be paid. Unhappy vendors can hurt not only your business credit score but, worst, your credibility as a business and business owner.
Here’s how to make sure that you are in a good relationship with your invoices:
3.1 Your Receivables
- Create a list of all the open invoices due from your clients/customers, “invoices due to me”.
- Sort them according to when they’re expected to be paid. List first the ones due to you the soonest.
3.2 Your Payables
- Create a list of all the invoices you owe. “invoices I need to pay”.
- Sort them according to when your invoices are due to be paid. List the ones due the soonest first.
4. UPDATE PROGRESS TOWARD HITTING YOUR MONTHLY FINANCIAL GOALS
“Dream Chasin’, Catchin’ all my goals!” *in my Meek Mills voice* Bottom line, updating your progress towards hitting your financial goals is key to keeping your eye on the prize and staying motivated daily!
Now, listen. The time to look at your progress toward your monthly goal isn’t at the end of the month – it is weekly! Every single week, I want you to track how you are progressing toward your financial goal.
Example: If you set a $10,000 monthly revenue goal for yourself, then each week track how much progress you’ve made towards that goal and how much further you need to go to hit it.
We can’t do anything to change the past, but we surely can change the future!
[To learn how to set financial goals for a small business, read more here.]
5. MAKE A LIST OF WEEKLY ACTIONS TO TAKE FOR THE UPCOMING WEEK
Take this time to write what happened during the week.
- Reflect on what should have occurred based on your financial goals compared to what actually occurred.
- Write down what you need to do in the upcoming week to align your actions with your financial goals.
The key here isn’t just reviewing your outcomes so you can learn from them, but it is also about determining the specific actions you need to take to adjust or course-correct accordingly. Remember that part of being proactive means taking control of a situation rather than letting it control you.
One of my main goals is always to find ways to help you as a CEO and business owner be financially savvy and to build your confidence in your business finances so that you can make better business decisions. Through these money habits, from establishing your morning routine to instilling a positive money mindset, conducting weekly money dates, checking in on your invoices, updating your progress, to making a list of weekly actions to take for the upcoming week, you will be putting in the work to become a Finance Savvy CEOTM.
Small changes in your financial habits will make a big difference over time! When these financial habits are performed consistently, I know they will help you create financial freedom, make boss money moves, and keep your business in business for the long haul.
Now that you know the money habits that you need to have to succeed in business, are you serious about committing to implementing them in your business? If so, hop into our community of like-minded business owners who are all working towards reaching their financial goals through powerful and consistent money habits. [JOIN OUR COMMUNITY HERE]
BONUS: Download this checklist to help you build your money habits to succeed in your business. Includes 2 techniques that are not found in this post, which will help you to skyrocket your results while implementing these financial habits.